|Market Close||Market Close|
|A cold start is forecast for May and a number of outages caused supply constraints, resulting in gains across the near-curve yesterday. However, below average demand levels resulted in an oversupplied system, limiting the upward movement. Further out, another rally in oil prices helped contracts climb higher, despite a drop in APi2 coal.||Wind levels were forecast to decrease slightly today, helping the prompt move higher at the start of the session, although improved solar power limited the gain. The rest of the curve took direction from the cooler weather outlook and lower gas flows, while a late surge in oil prices offset the effects of a drop in coal.|
|Market Open||Market Open|
|The system has opened 9mcm short this morning due to a rise in demand, although an improvement in Norwegian flows and storage withdrawals have capped any price increases. Strong oil prices continue to provide support but prices at the back of the curve have moved down due to weakening coal.||Renewable levels are expected to rise tomorrow which has helped Day-Ahead power record a loss this morning. Consumption levels should remain below the seasonal norm for the coming week, applying bearish pressure to the rest of the near-curve, while weaker coal has weighed on prices at the back of the curve.|
For a breakdown of the current generation mix visit our Power Generation Insights page.
Brent has hit a three-year high of over $75.4/b as markets remain bullish due to production cuts and on-going political issues. High US drilling provides on-going resistance but the market continues to strengthen.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased – closing at 50.00ppt and £49.92/MWh, respectively.
Today’s prices can also be found in an easy to read table on our ‘current UK energy price' page.
Click graph to enlarge
If you would like to learn more about how Apollo Energy can help your business find the best deal on its gas and energy contracts then feel free to get in touch by calling us on 01257 239500 or using the form on our contact form.